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Is stock trading halal or haram?

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Answered by:  Maulana Irfan Ali


Assalamu Alaikum Wa Rahmatullah

Is stock trading halal or haram?


بسم الله الرحمن الرحيم

In the name of Allah, the Most Gracious, the Most Merciful.

Assalamualaikum Wa Rahmatullahi Wa Barakaatuh

The matter of stock trading has been under scrutiny for some time. As time has advanced into stock trading and shares a lot of Muslims find themselves in a dilemma to it being halal or haram.

The contemporary scholars are of the opinion to its being permissible under some rules and conditions, if the conditions are met then it would be permissible to buy and sell but if they are not met then it would be impermissible to take part in such trading.

The conditions are as follows:

1.   The business is permissible such as textile or any other halal form of business

2.   That all the business is not in liquid form but rather has some fixed assets also like building or other forms of a fixed asset

3.   If the company is dealing with interest then this issue is raised in the meetings.

4.   When the profit of the business is shared whatever interest is accumulated on the profit must be given in charity.

With these conditions, stock trading would be permissible. (Fiqhi Maqalaat vol 1 page 151 Meman publishers)


Only Allah knows best

Written by Maulana Irfan Ali

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham


This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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